Document date: Mon 20 May 2002 Published: Mon 20 May 2002 13:10:29 Document No: 264444 Document part: A Market Flag: Y Classification: Other EGLOBAL INTERNATIONAL LIMITED 2002-05-20 ASX-SIGNAL-G
HOMEX - Sydney
+++++++++++++++++++++++++ eGlobal International Limited has today announced it has formed a Joint Venture in the United States with InsureNet USA Inc to market and sell its smart card-based motor vehicle insurance verification systems. The new Company will be called InsureNet America Inc and is a 50/50 Joint Venture arrangement.
The United States joint venture will see eGlobal supply smart card and related technologies for the development of a new fully-integrated software system to track motor vehicle registration throughout the United States.
eGlobal Managing Director Gordon Chalmers said the new InsureNet JV represents a significant milestone for eGlobal internationally.
He said the joint venture follows a series of live demonstration programs of the new motor vehicle insurance verification system to various Federal and State Authorities.
"Our initial involvement with InsureNet has allowed them to successfully demonstrate their vision to clients," he said.
"Now we can move forward with the deployment and implementation of the system, which both parties believe has significant potential in the United States market. A number of State Authorities and insurance companies are already looking very closely at the system and there are many growth opportunities ahead."
The InsureNet system is designed to provide a fast, accurate and unified method of verifying motor vehicle insurance in the United States. Motor vehicle insurance is mandatory in almost every US State, but unlike Australia, US Insurance Agents are not required to report new policies to insurers in a timely manner and provide proper binders to their clients.
Mr Chalmers said the delays and inaccuracies in reporting motor vehicle insurance in the United States have led to major problems and costs with uninsured driving and insurance fraud.
"Many drivers obtain insurance for only a short period then cancel and continue to use once-legitimate documents, while many others have fake documents or none at all," he said.
"Nationally, it is estimated that at least one in five US drivers is uninsured at any given time and the losses sustained each year run into the billions."
InsureNet aims to counter such problems by implementing a uniform verification system based on smart cards containing vehicle identification numbers and monitoring software that can interface with insurers and law enforcement authorities.
eGlobal Chief Technical Officer Greg Craven said eGlobal will supply a system of encrypted smart cards, matching readers and associated communication technologies to InsureNet.
He said the new system will provides both instant and accurate registering, updating, monitoring and verification of motor vehicle insurance status and has enormous potential in the United States.
Mr Chalmers said eGlobal has undertaken a number of projects in the United States in recent years, but the InSureNet project is the most significant in terms of establishing a strong foothold for future growth.
"The United States is a massive and highly-competitive technology market, but one that offers tremendous opportunities for our smart card technologies."
ABOUTeGLOBAL Visit http://www.eglobal.net for further information.
Further Information: Gordon Chalmers MANAGING DIRECTOR eGlobal International Limited (07) 3369 6899
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